646/1992 Sb.
The COMMUNICATION FROM the
the Federal Ministry of Foreign Affairs
The Federal Ministry of Foreign Affairs says that the June 10. July
1990 was in the Prague agreement signed between the Government of the Czech and Slovak
The Federal Republic and the Government of the United Kingdom of Great Britain and
Northern Ireland on the promotion and protection of investments.
With the agreement have expressed their approval of the Federal Assembly of the Czech and Slovak
The Federal Republic and the President of the Czech and Slovak Federal
The Republic has ratified it.
Agreement entered into force, pursuant to article 13 on 26 February 2000. October
1992.
The Czech version of the agreement shall be published at the same time.
The AGREEMENT
between the Government of the Czech and Slovak Federal Republic and the Government of the United
Kingdom of Great Britain and Northern Ireland on the promotion and protection of
investment
The Government of the Czech and Slovak Federal Republic and the Government of the United
Kingdom of Great Britain and Northern Ireland
Desiring to create favourable conditions for the development of investment investors
one State on the territory of the other State;
Recognizing that the promotion and reciprocal protection of investment provided by the
the international agreement will contribute to stimulate business
initiatives and to support the development of economic relations between the two countries;
bulwarks in the spirit of the principles of the final act of the Conference on security
and cooperation in Europe, signed at Helsinki on 1. August 1975;
have agreed upon the following:
Article 1
Definition of terms
For the purposes of this agreement:
(a) the term "investment" refers to all assets belonging to the investor
one Contracting Party in the territory of the other Contracting Party in accordance with the legal
regulations of that other party in any field of the economy, and it
in particular:
(i) movable and immovable property and all rights associated with it,
including mortgages, pledges and guarantees;
(ii) shares, deposits and bonds of the company, and other forms of participation in the
of the company;
(iii) cash claim or claims under the Treaty with
financial value;
(iv) the rights of intellectual property, including intangible benefits
United with the good name or reputation of the company (goodwill), know-how and
technical procedures;
(v) business arising from law, or permission, in accordance with the
the legal order of the Contracting Parties, on the basis of the contract, including
permission for exploration, extraction, cultivation or use of natural
sources.
Change of the form in which assets are invested does not affect the nature of the
investments within the meaning of this agreement. The term "investment" shall comprise all
investment, regardless of whether they were made before or after the entry
This agreement enters into force;
(b) the term "income" refers to the amount obtained from the investment gains, in particular,
interest, capital gains, dividends, licensing and other fees;
(c) the term "investors" means:
(i) in respect of the Czech and Slovak Federal Republic:
AA) all legal persons established by Ms. the rule of law;
BB) all natural persons who are, according to Ms. law of the citizens
CZECHOSLOVAKIA and if they are, according to Ms. the law authorized to act as investors;
(ii) as regards the United Kingdom:
AA) physical persons deriving their status of citizens of the United Kingdom of
laws in force in the United Kingdom;
BB) corporations, firms and associations registered or established in the
accordance with the law in force in any part of the United Kingdom or on
any territories to which this agreement will be extended in accordance
with the provisions of article 12;
(d) the term "territory" means:
(i) in respect of the Czech and Slovak Federal Republic: the Czech
and Slovak Federal Republic;
(ii) as regards the United Kingdom: Great Britain and Northern Ireland,
including the coastal waters and any maritime area situated beyond the
coastal waters of the United Kingdom, that have been or in the future
may be designated by the law of the United Kingdom in accordance with the law
International for the area in which the United Kingdom may exercise the
rights relating to the seabed and subsoil and their natural resources, and
any territory to which it will extend the validity of this agreement in accordance
with the provisions of article 12.
Article 2
The promotion and protection of investments
(1) each Contracting Party shall encourage and create favourable conditions
for investors of the other Contracting Party to investment of capital in its territory
and with regard to its sovereign right to exercise the power given its laws
such investments will allow.
(2) Investments of the investors of each Contracting Party will always be ensured
fair and equal treatment and shall enjoy full protection and
safety on the territory of the other Contracting Party. None of the parties
will not be any unauthorized or discriminatory measures to worsen
management, maintenance, use, recovery or disposal of investment
investors of the other Contracting Party in its territory.
(3) Investors of one Contracting Party may enter into with the other Contracting
party to the special agreements, whose provisions and the effect, if they have not
more favourable to the investor, must not be in violation of this agreement. Each
Contracting Party, as regards the investments of investors of the other Contracting Party,
It will comply with the provisions of these specific agreements, as well as the provisions of
of this agreement.
Article 3
National treatment and MFN clause
(1) each Contracting Party shall ensure that, in accordance with its legal structure,
investments or investors of another Contracting Party to the proceeds will provide
treatment not less favourable than that accorded to investments or the proceeds
its own investors or investments or returns of investors
of any third State.
(2) each Contracting Party shall ensure, in accordance with its legal structure,
investors of the other Contracting Parties, as regards the management, maintenance,
the use, recovery or disposal of their investments, a treatment no
less favourable, than to its own investors or
investors of any third State.
Article 4
Liquidated damages
With investors of the Contracting Party whose investments in the territory of the other Contracting
Parties suffer damage as a consequence of the armed conflict, a State of emergency
or civil unrest in the territory of the other Contracting Party, will not be affected by this
a Contracting Party shall be treated as regards restitution, compensation or
the other settlement, worse than to its own investors or to investors
of any third State. The payments shall be freely transferable.
Article 5
The expropriation
(1) investments by investors of either Contracting Party shall not be nationalized,
expropriated or subjected to a measure that would have a similar effect as
nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the other
the Contracting Parties, with the exception of public interest arising from internal
the needs of the Contracting Parties on the basis of non-discrimination and against immediate,
adequate and effective compensation. Such compensation will be equal to
the actual value of the expropriated investment immediately before the expropriation
or immediately before the intended expropriation became public
known, whichever occurred earlier, including interest, as per usual
the commercial rate on the payment date, it will be carried out without delay, will
feasible and freely transferable. Concerned investors have the right to
accordance with the laws of the contracting party carrying out expropriation request
review of its case and of valuation of its investments judicial or other
by an independent authority of the Contracting Party, in accordance with the principles contained in the
This paragraph.
(2) the provisions of paragraph 1 shall also apply to cases where a Contracting Party
expropriates the assets of a company that has been registered or established in the
accordance with the applicable laws and regulations in any part of its territory, and in which
private investors of the other Contracting Party.
Article 6
Transfers of investments and income
Each Contracting Party shall ensure that, with regard to investments of investors of the other
the Contracting Parties, the free transfer of their investments and returns. Transfers will be
made promptly, in the convertible currency in which the capital was originally
invested or in any other convertible currency, to which the investor and
the Contracting Party agree. If the investor does not agree with the
other transfers are carried out monthly exchange rate valid on the date of the conversion
in accordance with the foreign exchange regulations.
Article 7
Exceptions
The provisions of this Agreement governing the provision of treatment no less
favourable than that accorded to the investors of any party
or of any third State, will not be interpreted so that one
a Contracting Party is obliged to provide to investors of the other Contracting Party
the benefit of any treatment, preference or advantage arising from the
(a) any existing or future customs or economic Union or
similar international agreements to which either Contracting Party involved in
or will participate in, or
(b) any international agreement, the agreement or the national
provisions relating to only or mainly to taxation.
Article 8
The settlement of disputes between an investor and the receiving State
(1) any dispute between an investor of one Contracting Party and other Contracting
party relating to the obligations of the other Contracting Party in accordance with articles 2
paragraph. (3), 4, 5 and 6 of this agreement in relation to the investment of the investor,
that were not resolved amicably, will be after the expiry of four months from the
written notice of the requirement at the request of any party to the dispute
submitted to arbitration under subsection (2).
(2) if the dispute is submitted to arbitration, the investor, which is a dispute
refers to, has the right to submit the dispute either:
(a) the arbitrator or ad hoc arbitration tribunal to be appointed Special
agreement or will be established and will act in accordance with the arbitration rules of the Commission
The United Nations international trade law (UNCITRAL); Parties in a dispute may
agree in writing to modify these rules or
(b) of the Stockholm Chamber of Commerce Court of arbitration, or
(c) Court of arbitration of the Federal Chamber for trade and industry in Vienna.
(3) an arbitrator or arbitration tribunal to which the dispute is submitted in accordance with
paragraph (2) will be in deciding based on, in particular, of the provisions of this
The agreement.
Article 9
Disputes between the Contracting Parties
(1) disputes between the Contracting Parties concerning the interpretation or application of this
The agreement will, if possible, resolved amicably.
(2) if the dispute between the parties fail to settle, as follows
It shall submit, at the request of any party to an arbitration tribunal.
(3) the Arbitration Tribunal shall be drawn up in all the individual cases
in the following way: within two months of receipt of the request for
arbitration, each Contracting Party shall appoint one member of the Court. These two
Members then select a citizen of a third State on the basis of the approval of the
the two parties will be appointed by the President. The Chairman will
appointed within two months from the date of appointment of the other two members of the Court.
(4) if necessary the appointment will not be made within the time limits
set out in paragraph (3) of this article, any Contracting Party
may, unless otherwise agreed, to request the President of the international
the Court of Justice to make the necessary appointment. If the President of the
a citizen of any of the parties or other condition prevents
the performance of such a mission, will be asked to make the necessary appointment
Vice Chairman. If the Vice-President is a citizen of one of the Contracting
party or other condition also prevents the performance of such a mission,
will be required to make the necessary appointment of the senior
Member of the International Court of Justice who is not a citizen of any of the
of the Contracting Parties.
(5) the Court shall lay down its own procedural rules. The arbitral tribunal shall decide
a majority of the votes. Such a decision to commit to both parties.
(6) each Contracting Party shall bear the expenses for the Member of the Court and the costs for
own representation in negotiations; expenses of the Chairman and other expenses shall be borne by
both parties equally. However, the Court may, in its decision
specify that the greater part of the expenditure shall be borne by one of the Contracting Parties, and this
the decision is then binding on both Contracting Parties.
Article 10
Assignment of rights
(1) If a Contracting Party or its designated representative (hereinafter referred to as
"first party") shall make payment in connection with damages
relating to investments in the territory of the other Contracting Party, the other Contracting
the Party shall recognize:
(a) the transfer of all the rights and claims of the first Contracting Party to the Indemnified Parties
on the basis of law or legal act,
(b) that the first Contracting Party shall be entitled to exercise such rights and
to enforce such claims by virtue of subrogation to the same extent as
odškodněná party.
(2) the first Contracting Party shall be entitled in all circumstances to:
(a) the same treatment in terms of rights and entitlements derived from the title
assignment of rights, and
(b) any payments received in relation to those rights and claims,
to the extent that they were entitled to in respect of odškodněná party
This agreement, as regards the investments and related income.
(3) any payment received by the first Contracting Party in connection with the
obtained the rights and claims in the non-exchangeable currencies are first party
available in order to cover any expenditure incurred on the
the territory of the other Contracting Party.
Article 11
The use of other provisions
If the legislation of either Contracting Party or liability
existing now or in the future under international law between
the Contracting Parties in addition to this agreement contains rules, whether a generic
or specific, entitling investments by investors of the other Contracting Parties to the
treatment more favourable than that which is determined by the provisions of this agreement, the
the rules to the extent in which they are more convenient, take precedence over the provisions of this
By the agreement.
Article 12
The extension of the territorial validity of
At the time of the entry into force of this agreement, or at any later date may be
This agreement extended to such of the territories for whose international
the relations the Government of the United Kingdom, in accordance with the agreement
to be effected by Exchange of notes between the Contracting Parties.
Article 13
Entry into force
Each Contracting Party shall notify the other Contracting Party meet
the constitutional procedures required in its territory for the entry into force of
of this agreement. This agreement shall enter into force on the later of the two
the notification.
Article 14
Duration and termination
This agreement shall remain in force for a period of ten years. Then still remains
in force for a period of twelve months from the date on which one of the Contracting
the Parties shall notify in writing the other party of the termination of. As far as
the investments made during the term of the agreement, its provisions will be
apply to such investments for 15 years from the date of their
force, which does not preclude the use, without prejudice to the General rules, then
of international law.
In witness whereof the undersigned, duly authorised to do so by their Governments,
have signed this agreement.
Done at Prague on 10. July 1990 in two copies, each in the language
Czech and English, both texts being equally authentic.
For the Government of
The Czech and Slovak Federal Republic:
Doc. Ing. Václav Klaus, CSc. v.r.
the Finance Minister of CZECHOSLOVAKIA
For the Government of
United Kingdom of Great Britain and Northern Ireland:
Nicholas Ridley v.r.
Secretary of State for trade and industry
United Kingdom of Great Britain and Northern Ireland
PROTOCOL
to the agreement between the Government of the Czech and Slovak Federal Republic and the Government
United Kingdom of Great Britain and Northern Ireland on the promotion and
protection of investments
When the signature of the agreement between the Government of the Czech and Slovak Federal Republic
and the Government of the United Kingdom of Great Britain and Northern Ireland on the
promotion and protection of investments, the undersigned agent of their Governments
have agreed as follows:
"The provisions of article 6 of the agreement will apply in respect of the Czech and
Slovak Federal Republic, so that the free transfers, which
involve the proceeds and repayment of loans, will be allowed in one year just in
20% of the values invested by the investor from the United Kingdom; This
the value will be equal to the value of the investment at the date of the authorisation to
territory of the Czech and Slovak Federal Republic.
All of the conversions that take place from an account maintained in convertible
the company's currency, on which the investor share, above, the restrictions
are not subject to. "
This Protocol is an integral part of the abovementioned Agreement. If
the Contracting Parties agree, in writing, on an earlier date, the validity of the
The log ends on 31 December. December 1994.
Done at Prague on 10. July 1990 in two copies, each in the language
Czech and English, both texts being equally authentic.
For the Government of
The Czech and Slovak Federal Republic:
Doc. Ing. Václav Klaus, PhD. v.r.
the Finance Minister of CZECHOSLOVAKIA
For the Government of
United Kingdom of Great Britain and Northern Ireland:
Nicholas Ridley v.r.
Secretary of State for trade and industry
United Kingdom of Great Britain and Northern Ireland
